31.—(1) Part 2 (deduction of earnings related contributions) is amended as follows.
(2) In paragraph 6 (deduction of earnings-related contributions)—
(a)in sub-paragraph (1) for “emoluments” substitute “ general earnings ”;
(b)in sub-paragraph (1)(a) for “regulation 20 of the Income Tax Regulations (employee on fixed pay)” substitute “ regulation 35 of the PAYE Regulations (simplified deduction scheme) ”.
(3) In paragraph 7 (calculation of deduction) M1—
(a)for “emoluments”, wherever it occurs, substitute “ general earnings ”;
(b)in sub-paragraph (3) after “paragraph (b)” in the second place it occurs insert “ or sub-paragraph 4(a) or (f) ”;
(c)in sub-paragraph (4)—
(i)at the end of paragraph (d) omit “or”;
(ii)after paragraph (e) insert—
“; or
(f)the payment in question is made to a person whose place of employment is outside the United Kingdom and on whose general earnings Class 1 contributions are, but income tax is not, payable.”;
(d)in sub-paragraph (5A)(a) after “(4)(e)” add “ or (f) ”;
(e)in sub-paragraph (9)(b)—
(i)for “shares”, in each place where it occurs, substitute “ securities ”;
(ii)in sub-paragraph (ii) for “regulation 22(3)” substitute “ regulation 22(5), (6) or (7) ”; and
(iii)in sub-paragraph (iii) for “section 135 of the Taxes Act 1988 (gains by directors and employees from share options)” substitute “ section 4(4)(a) of the Act ”;
(f)omit sub-paragraph (10);
(g)in sub-paragraphs (11) and (12) for “shares”, in each place where it occurs, substitute “ securities ”; and
(h)in sub-paragraph (15) for “superannuation”, in each place where it occurs, substitute “ pension ”.
(4) In paragraph 9 (certificate of contributions paid) M2—
(a)in sub-paragraph (1)—
(i)for “regulation 39 of the Income Tax Regulations (certificate of tax deducted)” substitute “ regulation 67 of the PAYE Regulations (information to employees about payments and tax deducted (Form P 60)) ”; and
(ii)for “Board” substitute “ Inland Revenue ”; and
(b)in sub-paragraph (2)—
(i)for “regulation 39 of the Income Tax Regulations” substitute “ regulation 67 of the PAYE Regulations ”;
(ii)for “emoluments” substitute “ general earnings ”; and
(iii)after “concerned” insert “ or the employee was not in the employer’s employment on the last day of the tax year, ”.
Marginal Citations
M1Paragraph 7 has been amended: relevant amendments are made by regulation 7 of S.I. 2002/2929, and regulation 2 of S.I. 2003/1337.
M2Paragraph 9 has been amended by regulations 2 and 16 of S.I. 2003/193, and regulation 3 of S.I. 2003/1337.